India, May 7 -- Weeks after launching a policy asking restaurant partners to share 50% of refund costs, foodtech major Zomato has now put the policy on hold.

Zomato rolled out the new policy over the past couple of months in phases. In the emails sent by the company to the restaurant partners, Zomato said that the restaurants and the company will contribute 50% each for the refunds provided to customers

Inc42 has seen the email sent by the company to the restaurants.

"Unadressed concerns lead to gradual yet steady decline in customer retention, hurting both the restaurant's and Zomato's ability to drive demand. The cost of a lost customer is far greater than the cost of resolving a complaint," Zomato said in the email.

It further unde...